Unlocking the Investment potential in Vietnam

Seoul, 27 June 2018 - During 26 June in Seoul and 27 June 2018 in Incheon, South Korea, the Business Forum and Workshop “Unlocking the potentials of investment in Vietnam” were successfully organized by KCCI, VCCI, Embassy of Vietnam in South Korea, and VSIP JSC. The two events attracted a total 150 participants from 90 South Korean enterprises and other interested parties.

South Korea has firmly retained its position as Vietnam’s leading source of foreign direct investment in the first quarter of 2018, contributed 28.72% - the largest proportion to the FDI with 310 new projects and 110 capital-increment projects, accounting for US$ 2,3 billion of the total investment capital. In total, there have been approximately 7000 projects with the total investment capital standing at US$59 billion, contributing 18.5% to the FDI of the whole of Vietnam.

Among 63 provinces and cities in Vietnam, Bac Ninh and Hai Phong are currently the most ideal spots for South Korean investments with 845 projects and nearly US$ 15 billion invested capital.

Sectors holding a high capacity of investment from South Korean firms include the manufacturing & processing industry, real estate business, construction, and logistics.

Why have South Korean enterprises chosen Vietnam to invest in? “Nine key contributors to note are its Strategic location, Global economic integration, Stable politics, Competitive human resource, Open policy with high investment incentives, Competitive production cost, Improved infrastructure, Cultural Similarity, and High economic growth”, said Dinh Thi Tam Hien - Investment Counsellor for the South-Korea based Embassy of Vietnam and Deputy director of the Ministry of Planning and Investment’s (MPI) Foreign Investment Agency (FIA) - in the meeting.

With the objective of providing participants with an overview of the investment environment and prospects in Vietnam driven towards a sustainable development, speakers from Shinhan Bank, Logos Law LLC and Sumika got together. They also revealed various tips on investing, updates on real estate law and policy in Vietnam, and the reasons for choosing Vietnam. Particularly, Sumika chose VSIP as their partner and VSIP Bac Ninh as the ideal location to settle their business.

VSIP is a joint venture between Singapore consortium led by Sembcorp Development Ltd. and Becamex Corporation, a state owned company of Vietnam. Established in 1996 in Binh Duong as initiative and cooperation between the Governments of Vietnam and Singapore, VSIP has numerous advantages including Strategic geographic location; High-quality infrastructure with a comprehensive and integrated facilities and amenities; Ideal place for live, learn, work and play; and Streamlined and professional customer services.

Strongly supported by the two Governments and described as an economic driver, over 22 years, VSIP has attracted 750 companies from 30 countries and territories with US$11.5 billion in investment capital, created job for 200,000 local people.

VSIP has named “Best Developer, Industrial and Warehouse, Overall: Vietnam” five times by Euromoney, most recently in 2017.

Riding on the success of VSIP JV in Southern Vietnam, VSIP embarked on its expansion to Northern Vietnam by developing VSIP JSC (or VSIP North) primarily consisting of VSIP Bac Ninh, VSIP Hai Phong and VSIP Hai Duong. Given the current full occupancy at VSIP Bac Ninh, VSIP JSC intends to expand its’ presence by investing and developing another industrial estate in the province this year, a 273-hectare industrial development called VSIP Bac Ninh 2. The proposed site is located at a 15-minute drive to Hanoi’s Noi Bai International Airport and close to the automotive and electronics hub of the North. VSIP Bac Ninh 2 will offer investors an added option when investing in Northern Vietnam in the near future.

Through the Business Forum, participants were able to discover new business opportunities for their investments in Vietnam, in the North and with VSIP JSC. This will be beneficial for both South Korean firms, VSIP JSC, and the economic development of Vietnam. VSIP JSC is a highly prioritized destination for business partners, with over 100 South Korean enterprises choosing to locate their investments in the provinces of Bac Ninh, Hai Phong, Hai Duong, where VSIP is located, in just the last four months.

“In choosing Vietnam and cooperating with VSIP JSC, our business partners will never walk alone because they are both our business partners and our friends” – affirmed Benjamin Lam, VSIP JSC Representative.